The 18-year-old right-back, who made his senior debut earlier in 2012, will complete his transfer in January but delay his arrival at Stamford Bridge until the end of the seasonChelsea have agreed terms with Fluminense to sign Wallace in the January transfer window, with the full-back to join the squad in the summer.
The 18-year-old defender is a former Brazil Under-17s international colleague of new team-mate Lucas Piazon and moves to Stamford Bridge for an undisclosed fee.
An attack-minded right-back with pace, the youngster has played only 18 league games for the Brazilian side, having made his senior debut earlier in 2012.
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Having joined Fluminense in 2005, Wallace has drawn comparisons to another full-back produced by the club, Real Madrid's Marcelo.